loan company with FSCS

daffodil40

I have started a claim to get back my PPi payments and the company who is dealing with it has just got back to me (within the week) to say that the loan company is now with the Financial Services Compensation Scheme (FSCS) . Could anyone please tell me what this means. The claim is still going through. But I was told by a friend that I might not have to pay the full amount of the loan back, and as I am unemployed and so is my husband that would wonderful. When I was made unemployed, 18months ago, I did contact the company as I said I can no longer pay the full amount and so it went to another company so I can pay less per month. The interest has been stopped.
Any info would be helpful.
Thank you.

Apples2

No, you will still have to repay the loan. Can we assume this is Welcome Finance?

What is happening with Welcome and the FSCS?

On 2 March 2011 the FSCS declared WFSL in default. This is because the firm is unable, or likely to be unable, to pay claims against it in relation to PPI. WFSL sold a substantial number of PPI policies to its customers, and a declaration of default opens the way for those customers, and any others who might have valid claims against the firm that are protected by the FSCS, to make a claim.
The FSCS will now be responsible for PPI claims against WFSL. To assist in its handling of claims, the FSCS has arranged to use WFSL's claims handling resources. However, the FSCS will remain responsible for all decisions on claims, which will be made in accordance with FSCS rules, and will closely oversee and monitor all steps in the handling of claims. This arrangement will enable claims to be processed more quickly and efficiently.
For the full press release, please visit: http://www.fscs.org.uk/news/2011/march/fscs-declares-welcome-financial-7pghpepm/index.html
The agreement with the FSCS does not affect your repayments on any existing loan. You should continue to pay your account in line with your agreement.
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However, it sounds like you are already in default of this loan so you are barely repaying it anyway (that's why the company went bust in the first place, due to taking on too many people who were not going to repay their loans).

You've already had the Interest frozen which is a bonus, you should be pleased.

daffodil40

yes you can assume it is Welcome finance. I am going to see how much they are going to repay the PPi it does say on the FSCS site that the money claimed will go onto repaying the loan so I might not get anything directly.So I might just reduce the amount I am repaying back. Even if it does take longer to repay, at the moment it is money in the pocket which is more important than anything else.

Apples2

Who knows where the PPI reclaim will end up, will be interested if you keep this post updated to let others know.

If you do end up with a lump sum in your pocket, and taken that your loan is already in default, it may be worth offering the lump in full and final settlement of the loan to whichever DCA is dealing with it.

They have been known to accept much reduced settlement figures. It may be appealing to keep the money for yourself but the sooner you get the ball and chain of debt off your ankle, the quicker you will find satisfaction (and can move forward).

daffodil40

will keep you updated. It would be nice to pay this off but the gas and electricity is first on the list. Even if they are being very accomadating.
Will keep updating when letters extra arrive.

oldbutnotwise

Is anyone else disgusted at the Financial Services Ombudsman decision to use the £90,000,000 (provisioned to pay Welcome Finance customers PPI claims) to pay off any outstanding balance off any loan they may currently have! Even if the loan a customer gets a full PPI refund they have jointly agreed that its in the best interest of the customer to have THEIR money applied to any outstanding balance of Welcomes choice. Why when the customer paid the miss sold premium month in month out from their hard earned money, should they now be told by the FSCS, without consultation how to use their redress funds. When I called the FSCS they just said, 'They are rules we decided with WFS' can they do that?? Previously Welcome gave the clients a choice and the FSCS continue to give the customer a choice, cash or pay off some of the balance but not with Welcome! I bet Welcome are filling their boots with our money!!!!!!

Apples2

I don't know though, as an outsider I don't see a real problem with it.

The money is owed so even if they give the ppi back to you, they would be failing in their task if they didn't help recover the money you owe them.

I think a lot of people are simply hoping Welcome disappear taking all the outstanding debts with them, that is unlikely to happen.
No matter what happens to Welcome, a debt is a simple business asset and can be sold on to the highest bidder.

If not Welcome, then someone will come knocking at the door for this debt to be repaid.

I can see the point of view in wanting a chunk of money in your pocket, but debts should have to be repaid

CLAPTON

doesn't PPI cover unemployment?

magpiecottage

oldbutnotwiser is an ambulance chaser. This thread shows he is and also why his arguments are unfounded and dangerous.

daffodil40

PPI does cover unemployment but it depends on how you were made unemployed. I had a argument with the boss, and had to leave. Unfortuntly it was my word against hers, so nothing came from it. Such as life.

Still havn't heard anything from the FSCS as yet.

Got letters from CITI about the bank charges, so keeping fingers crossed.
I have just redone our budget, by asking the catalogues I was with to close the account so I can make smaller payments, this does go on youe credit record, but I am not really bothered about that, or how long it will take to repay back as long as I can food on the table every night and keep warm, especially for the kids. Just found out that I can get a refund from our council due to our daughters cello lessons and exam, only about £30.00 but £30.00 is £30.00.

I am now going to put up a poly greenhouse so we can grow more vegetables, saving more money, about £100.00 a year, not a lot but at least the vegies are fresher.

amersall

oldbutnotwise wrote: »

Is anyone else disgusted at the Financial Services Ombudsman decision to use the £90,000,000 (provisioned to pay Welcome Finance customers PPI claims) to pay off any outstanding balance off any loan they may currently have! Even if the loan a customer gets a full PPI refund they have jointly agreed that its in the best interest of the customer to have THEIR money applied to any outstanding balance of Welcomes choice. Why when the customer paid the miss sold premium month in month out from their hard earned money, should they now be told by the FSCS, without consultation how to use their redress funds. When I called the FSCS they just said, 'They are rules we decided with WFS' can they do that?? Previously Welcome gave the clients a choice and the FSCS continue to give the customer a choice, cash or pay off some of the balance but not with Welcome! I bet Welcome are filling their boots with our money!!!!!!

I agree with this.
Had you not had ppi in the first place, then logic goes you would have been better off by the monthly amounts you paid for this, so your loan would not have reduced by the ppi amount anyway.

As it goes, you were paying for a product that was mis sold to you, so (unless you were in arrears) would you pay for something that you should not have been sold- twice?, if you wanted your loan to reduce, then you would have paid more to the loan during the term.